https://www.taxtmi.com/caselaws?id=253846 The court held that the royalty payments, expenditure on carpets, and expenses incurred by the Bombay Video Division were all allowable as revenue expenditures. The Assessing Officer's disallowances were overturned, affirming the decisions of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. The court emphasized that the royalty payments facilitated trading operations without creating a new capital asset, justifying their treatment as revenue expenditure. Similarly, the expenditure on carpets was deemed necessary for business operations, qualifying it as a revenue expenditure. The expenses by the Bombay Video Division were considered directly related to ongoing business activities, warranting their deduction. en-us Tue, 02 Dec 2014 00:00:00 +0530 Fri, 05 Dec 2014 19:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=253846 The court held that the royalty payments, expenditure on carpets, and expenses incurred by the Bombay Video Division were all allowable as revenue expenditures. The Assessing Officer's disallowances were overturned, affirming the decisions of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. The court emphasized that the royalty payments facilitated trading operations without creating a new capital asset, justifying their treatment as revenue expenditure. Similarly, the expenditure on carpets was deemed necessary for business operations, qualifying it as a revenue expenditure. The expenses by the Bombay Video Division were considered directly related to ongoing business activities, warranting their deduction. Case-Laws Income Tax Tue, 02 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=253846